New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-01-22
LOOKING FOR MISSING ASSETS.
RUMoRs ABOUT THE HOOKING VALLEY.

AN APPARENT DEFICIENCY OF 1921 ,OO0-TIIE
COURTS TO BE APPEALED TO.
Vague rumors of defalcation in the Columbus,
Hooking Valley and Toledo Railway Company have
been in circulation in Wall Street for two days They
have been officially denied only to spring up again as
rumors Of an of stock bonds, and when
these have been contradicted the charge has been
changed to Misrepresentation of securities. The rumors
have originated undoubtedly in the recent complete
overthrow of the former management. At the annual
meeting of the company at Columbus on January IL
entirely new board of directors was elected. IL
was composed of Charles Crocker and II. L. Terrell,
of New-York John Newell and ID. w. Caldwell
Cleveland; J. o. Mass. Sandusky, and w. NJ Greene
and John w. Shaw, Columbus Mr. Shaw was elected
president and Mr.. Greene icepresdent and genera,
manager Mr.. Greene the only ono who hau
been connected with the previous management:
The new officers Immediately began to inquire into
the condition OF the company, both physical and man.
oal and from the investigation have sprung the our
rent great deal of dissatisfaction has arisen
at the discovery of the terms winch securities OF
the company issued at the time Of the consoida-
ton in 1881, and especially in regard to the ac9u's
ton of the property of the Hooking Coal and Railroad
Company. II alleged that the cost of the property
much greater than its real value These diiier-
of opinion. however, are apt to arise on any
change of management but in this instance they are
not unlikely it is said. to lead to long and eomph;
Gated litigation. In addition the company guaranteed
in 1885 the first mortgage bonds OF the Toledo anu
Ohio Central Railroad, the reorganized Ohio Centrai
main line. The new management has been unable TO
ascertain that the company received any valuable
consideration for this guarantee on the contrary II Is
asserted that the only for the action the TACT
that the former directors with their friends were the
largest holders of Toledo and Ohio rentral securities
of which they hoped to improve the value Ii is un-
derstOod that the management will probably
repudate this obligation the general ground that
consideration was given for the guarantee
President Sha Il, who has taken an energetic interest
in these matters, will arrive in New-iork tok,ght
Persons interested in the road have received f,w
III, ssages from him. but the iu particulars OF his In
yrstigatIon will not be known here until bis arrival.
Enough is kno however, to justify general state
ment in regard to the reported deficiency in the COM
pany's assets 1t is said that eI-Judge Stevenson
Burke who has been identified with the road tor sew
eral years and has been ls chiet executive ohicer
obtained from the Central Trust Company, trustee
njer the mortgage, $500, 900 OF the consolidated
mortgage bonds OF the company which he s supposed
to have still his possession Ii is not certain that 90
hods them for the benefit OF the company but 1t is
presumed that he has satisfactory tor the ab
OF the bonds from the custody OF the company
1t is asserted also that just before the annual election
when il was known that the former management
would be defeated, meeting of the executive coin
mittee was calec and that President Burke was
treasury to pay advances made to the company OF
other floating debt.
The new management SAYS in effect that II has not
found what debt the proceeds of the bonds eItn-
gushed, although apparently the honds were sold IN
accordance with the resolution of the committee. lhe
the TREASURY and the remaining 100000 not sold Is
reported TO be missing. The apparent deficiency IL
stated S121 OC0 therefore, although II Ia expected
that the bonds their equivalent will be recovered
TO the company. As the management Is contcm-
plating some legal action regard TO the consolidation
NAV be necessary to regain possession of the missing
assets.